REG - Gulf Marine Services - Q1 Update

Gulf Marine ServicesAnnouncement

Wed 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250507:nRSG5721Ha&default-theme=true

RNS Number : 5721H  Gulf Marine Services PLC  07 May 2025

 

Gulf Marine Services PLC

7 May 2025

Gulf Marine Services PLC

('Gulf Marine Services', 'GMS', 'the Company' or 'the Group')

Highlights of unaudited results for Q1 2025, Operations Update and Guidance.

 

GMS, a leading provider of advanced self-propelled, self-elevating support
vessels serving the offshore oil, gas and renewables industries, is pleased to
announce highlights of its unaudited operational results for the three months
period ended 31 March 2025 (Q1 2025).

 

Overview:

                                                      Q1 2025  Q1 2024  Change%
 Revenue (US$'m)                                      42.3     37.1     +14%
 Gross profit (US$'m)                                 19.9     17.0     +17%
 Adjusted EBITDA (US$'m)                              25.6     21.2     +21%
 Net Debt (US$'m)                                     187.4    256.5    -27%
 Net Leverage Ratio                                   1.79:1   2.96:1   -39%
 Utilisation of vessels                               89%      86%      3%
 Day Rates average (US$'k)                            34.2     31.8     8%
 Backlog as of last day of the period (US$ millions)  570      459      24%

 

Highlights:

·      Revenue increased to US$ 42.3 million (Q1 2024: US$ 37.1 million),
driven by higher fleet average day rates of US$ 34.2k (Q1 2024: US$ 31.8k) and
fleet utilisation of 89% (Q1 2024: 86%). Growth was further supported by
increased contributions from ancillary services such as mobilisation,
catering, and manpower etc.

 

·     Adjusted EBITDA grew by 21% to US$ 25.6 million (Q1 2024: US$ 21.2
million) driven mainly by higher revenue. Adjusted EBITDA margin also improved
to 61% (Q1 2024: 57%).

 

·      The net leverage ratio is now down to 1.79x (31 December 2024:
2.0x) driven by continued improved adjusted EBITDA and lower net bank debt of
US$ 187.4 million (31 December 2024: US$ 201.2 million, and 31 March 2024: US$
256.5 million). The Group continued to make prepayments towards its loan,
further strengthening its financial position.

 

·       Gross profit margin improved to 47% (Q1 2024: 46%).

 

·      Finance expenses decreased by 31% to US$ 4.3 million (Q1 2024: US$
6.1 million), primarily due to reduction in gross debt and lower margin. The
margin, which was 3.1% in Q1 2024, decreased by 10 bps after the Group's net
leverage ratio fell below 3:1 in March 2024. Additionally, the margin further
declined by 50 bps following successful refinancing of the loan facility on
improved terms as of December 30th, 2024.

 

Outlook:

·      Adjusted EBITDA guidance for 2025 remains in the range of US$ 100 -
108 million. As for 2026, and while we are still closely monitoring the global
economic news, we are targeting an EBITDA in the range of USD 105-115 million.

 

·      Demand in the market remains strong due to a combination of high
market activity and limited vessel availability. An estimated 18 new vessels
are expected to be operational in the next 2 to 3 years. Provided the
recession fears don't materialize, we expect market growth and retirement of
aged assets from 2025-2027 to absorb the supply increase.

 

·     The various announcements of increased tariffs by certain governments
created market instability, raising concerns about recession, inflation, and
higher debt costs. While the impact of these tariffs cannot yet be estimated,
the demand for SESVs is expected to remain stable. GMS's focus on increasing
resilience to navigate potential economic downturns is now more critical than
ever, with management closely monitoring the situation.

 

·     Contract awards announced in Q1 2025 have a combined total charter
period of 7.4 years (Q1 2024: 10.3 years). Secured backlog was US$ 570.0
million on 31 March 2025 (31 March 2024: US$ 455.3 million).

 

·     During Q1 2025, 38.4 million warrants were exercised, resulting in
the issuance of 60.0 million new shares. The remaining 15 million warrants, if
exercised, would result in the issuance of 23.5 million shares at an exercise
price of 5.75 pence, exercisable until 30 June 2025.

 

Alex Aclimandos, Chief Financial Officer at GMS said:

"We are pleased to report that GMS has maintained strong momentum into 2025,
building on the operational and financial achievements of last year. Looking
ahead, we remain committed to providing a resilient capital structure,
proactively managing risks and advancing our shareholder rewards program, all
while positioning the Group to capitalise on market opportunities. We are
confident in our ability to deliver sustainable, profitable growth as we move
forward into the remainder of the year."

 

Mansour Al Alami, GMS Executive Chairman, said:

"As we navigate the evolving complexities of our industry, we remain firmly
committed to executing a resilient and sustainable strategy that safeguards
long-term financial performance and maximizes sustainable value for our
shareholders. I am delighted the performance in the first quarter of this year
is a strong contribution to this objective."

 

 Enquiries:

Gulf Marine Services PLC

 Mansour Al Alami           Tel: +44 (0)20 7603 1515

 Executive Chairman

 Alex Aclimandos

 Chief Financial Officer

 Celicourt Communications   Tel: +44 (0) 20 7770 6424

 Philip Dennis

 Mark Antelme

 Ali AlQahtani

 

Notes to Editors:

Gulf Marine Services PLC, a company listed on the London Stock Exchange, was
founded in Abu Dhabi in 1977 and has become a world-leading provider of
advanced self-propelled self-elevating support vessels (SESVs). The fleet
serves the offshore energy industries from its offices in the United Arab
Emirates, Saudi Arabia, and Qatar. The Group's assets are capable of serving
clients' requirements across the globe, including those in the Middle East,
South East Asia, West Africa, North America, the Gulf of Mexico, and Europe.

 

The GMS fleet of 14 SESVs is amongst the youngest in the industry. The vessels
support GMS's clients in a broad range of offshore platform refurbishment and
maintenance activities, well intervention work, and offshore wind turbine
maintenance work (which are opex-led activities), as well as offshore platform
installation and decommissioning and offshore wind turbine installation (which
are capex-led activities).

 

The SESVs are categorised by size - K-Class (Small), S-Class (Mid), and
E-Class (Large) - with these capable of operating in water depths of 45m to
80m depending on leg length. The vessels are four-legged and are
self-propelled, which means they do not require tugs or similar support
vessels for moves between locations in the field; this makes them
significantly more cost-effective and time-efficient than conventional
offshore support vessels without self-propulsion. They have a large deck
space, crane capacity, and accommodation facilities (for up to 300 people)
that can be adapted to the requirements of the Group's clients.

 

Gulf Marine Services PLC's Legal Entity Identifier is 213800IGS2QE89SAJF77

www.gmsplc.com

Disclaimer

The content of the Gulf Marine Services PLC website should not be considered
to form a part of or be incorporated into this announcement.

 

Cautionary Statement

This announcement includes statements that are forward-looking in nature. All
statements other than statements of historical fact are capable of
interpretation as forward-looking statements. These statements may generally,
but not always, be identified by the use of words such as 'will', 'should',
'could', 'estimate', 'goals', 'outlook', 'probably', 'project', 'risks',
'schedule', 'seek', 'target', 'expects', 'is expected to', 'aims', 'may',
'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans',
'we see' or similar expressions. By their nature these forward-looking
statements involve numerous assumptions, risks and uncertainties, both general
and specific, as they relate to events and depend on circumstances that might
occur in the future.

Accordingly, the actual results, operations, performance or achievements of
the Company and its subsidiaries may be materially different from any future
results, operations, performance or achievements expressed or implied by such
forward-looking statements, due to known and unknown risks, uncertainties and
other factors. Neither Gulf Marine Services PLC nor any of its subsidiaries
undertake any obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or other information.
No part of this announcement constitutes, or shall be taken to constitute, an
invitation or inducement to invest the Company or any other entity and must
not be relied upon in any way in connection with any investment decision. All
written and oral forward-looking statements attributable to the Company or to
persons acting on the Company's behalf are expressly qualified in their
entirety by the cautionary statements referred to above.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDAFMRTMTTMBMA